Probe assault charges against Gautam Singhania, proxy advisory firm requests Raymond's independent directors | Mint
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Business News/ Companies / News/  Probe assault charges against Gautam Singhania, proxy advisory firm requests Raymond's independent directors
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Probe assault charges against Gautam Singhania, proxy advisory firm requests Raymond's independent directors

IiAS requested the independent directors to assuage the concerns of the investors and other stakeholders, and protect the company

File image of Raymond Chairman and Managing Director Gautam Singhania (Photo: Bloomberg)Premium
File image of Raymond Chairman and Managing Director Gautam Singhania (Photo: Bloomberg)

New Delhi: Independent directors of Raymond Limited should ask the promoters of the company to step aside in the wake of serious accusations against chairman and managing director Gautam Singhania, said proxy advisory firm Institutional Investor Advisory Services India Limited (IiAS).

In an open letter to the independent directors of the company, the firm requested them to assuage the concerns of the investors and other stakeholders, probe the allegations against the promoters, and protect the company.

Also Read: Veteran tycoon Vijaypat Singhania regret handing over business to son Gautam Singhania

 

“Despite such serious and heinous accusations by one board member against another, you have been silent... Your silence can be misconstrued – surely you don’t want stakeholders to think that these accusations are to be tolerated. At the very least, as Independent Directors, you need to communicate with investors and other stakeholders – assuage their concerns and articulate a course of action that you have taken following these public allegations," said the letter by IiAS. 

Seeking an independent investigation into the allegations of both, assault and CEO excesses, the letter said: “For the duration of this investigation, you must consider asking both Nawaz Modi and Gautam Singhania to take time off from their responsibilities as board members. We recognize that asking the promoters to step aside is not easy – but as independent directors, you have a fiduciary responsibility towards minority investors, employees, and a larger set of the company’s stakeholders. Therefore, you must separate ownership from management dispassionately."

Earlier in the month, Singhania had announced his separation from his wife, Nawaz Modi Singhania, a board member as well, through social media posts.

Nawaz Modi reportedly demanded 75% of his $1.4 billion net worth for herself and her daughters as a settlement. She accused Singhania of assaulting her and her daughter. She also alleged that Singhania has been using company funds for personal benefits (CEO excesses).

The proxy advisory firm also believes that the group has an experienced leadership with extensive industry experience to take charge and steer the ship of the group away from the realm of such accusations reflected in the significant erosion in stock price over the past few days. They have also asked the independent directors to answer a few questions about the long-term interests of the company and its stakeholders.

Singhania, meanwhile, has assured his employees and board members of the "smooth functioning" of the company amid the public spat between him and his estranged wife Nawaz Modi.

In an internal communication to his employees last week, Singhania wrote, “As the media is ripe with news about matters pertaining to my personal life, I am writing to you to say that I have chosen not to comment on the same as maintaining the dignity of my family is paramount to me. However, I remain resolute as Chairman & Managing Director and am fully committed towards the smooth functioning of the company and its business. Even in these difficult times for me, I assure you that at Raymond it is business as usual." Mint has seen a copy of the mail.

Notably, the shares of Raymond fell for the tenth day in a row on Tuesday. The scrip settled at 1,578.75 apiece on the BSE, down 4.27% as against the previous day's close.

 

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Published: 28 Nov 2023, 05:09 PM IST
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